Crony capitalism in India has come to an end with the new bankruptcy code: NITI Ayog CEO

Kant has also said that he, in his 40 years of service as a bureaucrat did not see development projects happening in the country which he has been seeing happening in last 3 to 4 years .

KOLKATA: The world of crony capitalism in India has come to an end with the new bankruptcy code, earlier one could borrow money from banks and not repay. Today, if one does not repay, he loses his business empire. Insolvency act and new bankruptcy code will ensure this, said NITI Ayog CEO, Amitabh Kant, while addressing a gathering in a programme organised by Indian Chamber of Commerce in Kolkata.

Adding that vast number of NPAs were created in India’s banks and that is the reason banks are going bust, he said , “One after another the businesses are losing their businesses and going to NLCT. NCLT is later bailing them out. So, therefore it is incumbent that you repay money to bank. Otherwise government will not survive in India. Government is held accountable. How can government not react when Nirav Modi incident happens ? Insolvency act and bankruptcy code will ensure that the world of crony capitalism comes to an end.”

With cases like Nirav Modi happening, the government is held accountable and it appears as a regulatory failure. The regulatory bodies are now very strict and vigilant , he added.

Kant has also pointed out that one of the key constraints for having 9 to 10% GDP growth is some of the old “outdated” institutions in the country which need to be “radically restructured” or “done away with”.

He further added that India has too many small enterprises and these generate 80% employments, however MSMEs in the country do not grow. Measures are being taken to make the MSMES flourish.

Kant has also said that he, in his 40 years of service as a bureaucrat did not see development projects happening in the country which he has been seeing happening in last 3 to 4 years .